Cox Claims Management (CCM) is to close its Colchester branch and transfer operations to its Swansea office. Staff at the Colchester branch were notified last week that the transfer would take place by 15 August.
CCM employs 27 people at Colchester.
According to the company, the decision follows a 12-month strategic review aimed at increasing efficiencies within CCM, and a more recent drop in the incidence of new claims received.
CCM managing director Fergus Curran said: "The decision has been made to move all Cox general claims handling operations to one site which will enable the company to maintain and improve its efficient service for all its customers.
"Unfortunately, this change will result in a number of job losses within our Colchester office. However, there are a number of vacancies in other areas of the business within Cox Insurance and we are hoping to re-deploy a number of staff. We are working with everyone affected to seek acceptable solutions wherever possible."
Around 250 claims staff are employed at the Swansea office, said CCM.
